Under heroic assumptions, a 15pp tariff increase with the dollar at current levels would shrink the goods-and-services trade deficit by $300-400 billion (about 1% of GDP), but since the current account deficit is 4% of GDP, this is a material change rather than elimination — and the effect on the current account may be even smaller because the investment income deficit is likely to widen.
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Speaker
Joseph GagnonEvidence Quote
“this is not getting rid of our trade deficit but it is a material uh change.”
Created: 6/18/2026, 1:57:48 PM
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